Shares of TuSimple (NASDAQ:TSP), which develops self-driving technology for long-haul trucks, jumped 8% on Tuesday bringing their two-day gain to 25.3% after Monday’s pop of 16%. This marks two consecutive days of the stock setting a new high.
Investors seem enthused about the prospects for the newly public company, which held its initial public offering (IPO) on April 15. The stock IPOed at $40 and closed at $70.55 on Tuesday, so it’s up 76.4% since it began trading two and a half months ago.
For context, the S&P 500 was up just 0.6% in the first two days of this week.
TuSimple didn’t release any news on Monday or Tuesday, nor did there seem to be any Wall Street analyst upgrades.
Furthermore, it seems that we can probably rule out the stock being one of the ever-growing number of “meme stocks” — stocks with high short interest that individual investors following certain Reddit communities are pouring into.
Only 4.4% of TuSimple’s float (shares available for trading) and 2.9% of its total shares were sold short as of June 15, the latest available data. Moreover, while trading volume was higher than usual on Tuesday, it wasn’t overly high, and Monday’s volume was only about average.
So, we can probably conclude that the 25% surge in TuSimple stock over the last two days is being primarily driven by some combination of more individual investors discovering the newly public company and buying shares and new institutional buying.